Is your Forex Broker a SCAM Broker?

If you are a regular poster or visitor to an
online Forex trading forum, you will most certainly see this question asked three
times out of 10: “is my broker a scam broker”?

Many of these online forums are littered
with one tale of woe or another about Forex brokers. But are all bad
experiences in Forex attributable to Forex brokers? When you consider that 96%
of all individual Forex traders fail at Forex trading, surely this cannot all
be attributed to some Forex broker scam activity. We, therefore, have to
distinguish between activities due to scam brokers, and bad trading practices
by traders.

The fact is that many retail Forex traders
enter the market unprepared, without realizing that Forex trading is a bit like
going to school and taking exams, with a reward of promotion to a higher grade
and eventually a certificate or degree as the case may be. In Forex, the trader
has to study the art of trading, and an actual Forex trade is the exam that
measures the trader’s proficiency, with the reward of a profit pay-out from a
successful trade. What we are generally seeing, especially in developing
countries where the technology for Forex trading took a while to catch up with
the rest of the world is that traders take only a few day’s training, or attend
“one-day intensive” seminars on a Saturday (when the market is not running),
then rush off on Monday with thousands of dollars to open Forex accounts to
start trading. In such scenarios, high failure rates can only be the outcome.
Many of these cases then go to online forums to report what they feel are the
reasons behind their failures. You hear things like “it was as if the market was
waiting for me to trade before going against me”. All this is bad trading in
action and cannot be attributed to fraud activity by a Forex broker.

However, we need to say that scam brokers
exist and their activities are very real. When you put money together with the
greed mentality that is locked up in a secret reserve of the human soul,
waiting to be tempted out of hiding, it is indeed impossible for brokerage
scams not to occur. There are many ways the Bad Brokers of this world try and
take your money. According to incomplete statistics, the current market has
more than 30% of foreign exchange brokers illegal brokers. There are a lot of different issues that can
cause alarm when dealing with currencies, which is why it's important to watch
out for broker tricks and instead try to invest with a platform that gives you
more control. Throughout this book you will see that how your broker
scam to you. This book also helps you to distinguish swindling brokers from
honest ones. Let's Start !